The Tech Industry’s influence on Colombia’s business environment

Colombian Data Centers

Colombia has emerged as a vibrant hub for technology innovation and entrepreneurship, attracting attention from local and international investors. Technology development has transformed specific industries in Colombia, such as audiovisual production, data centers, shared services centers, BPO services outsourcing, and software and IT services.

Audiovisual Production

Colombia’s audiovisual industry has experienced remarkable growth fueled by technology, talent, and supportive government policies. In 2019, audiovisual projects generated 45,774 jobs, representing a 13% increase compared to 2015, and accounted for 61% of Colombia’s cultural industries. 90% of the audiovisual sector are full-time employees.

The government has actively boosted this sector through legal incentives like Tax Laws 1556 and 814. This support has led to the creation of feature films and series for streaming platforms and TV and the development of production infrastructure. Digital technologies have also played a significant role by making high-quality production equipment accessible for independent studios and content creators.

Data Centers

Colombia has seen significant investments in data center construction, enhancing the country’s tech capabilities. Since 2020, over 20 data processing centers have been established nationwide. Colombia has a strong commitment to energy transition. It ranks third in Latin America and second in the Americas. 

The structure of the second digital port in Latin America by Gtd, and the installation of the ETIX center with Tier IV certification, further strengthen Colombia’s data center infrastructure. These investments are vital for economic growth and reducing inequality.

With available urban space, competitive prices, and energy costs aligned with market needs, Colombia offers ideal conditions for data center construction, catering to high demand from national and foreign markets.

Shared Services Centers

Colombia has emerged as a competitive Shared Service Centers (SSCs) market, providing specialized solutions in human resources, finance, procurement, logistics, technology, and digital transformation. The country ranks as the fourth-largest market for SSCs in Latin America, concentrating 11% of the region’s SSCs. 

According to A.T. Kearney’s global services location index, its favorable business environment and efficiency make Colombia an appealing destination for investors.

Colombia’s Workforce and Benefits

According to a study by Hays Human Talent, 10% of the economically active population in Colombia is bilingual, predominantly young people between 20 and 29 years old. Highly valued benefits such as remote work and flexible schedules reduce employee turnover to less than 5%.

Colombia’s SSC sector benefits from competitive salaries, with call center advisors typically earning around USD 400 monthly. Global companies such as Amazon, Johnson & Johnson, and SBD have recognized the sector’s potential and established operations in the country.

Outsourcing of BPO Services

Business process outsourcing (BPO) services in Colombia are globally recognized. From contact centers to consulting and auditing, the country serves diverse industries such as banking, consumer goods, telecommunications, and logistics.

The Colombian BPO industry leads globally, ranking first in the Offshore BPO Confidence Index. In 2021, sales surpassed $2.6B, accounting for 19.1% of total sales. The country has attracted investments from the United States, France, and Spain, with over 100 projects valued at over $300M.

Colombia as a Strategic Location

The country has a privileged location between major economic centers such as New York, Toronto, Buenos Aires, and Miami, and it benefits from favorable time zone alignment, enabling shorter response times and convenient travel to all key cities in America in under six hours.

Software and IT Services

Colombia’s software and IT services industry provides specialized solutions for fintech, healthcare, energy, and telecommunications, to name a few. 

With companies like Amazon Web Services, Microsoft, and Accenture investing in Colombia, the country has become a leading provider of technology-based services in Latin America. Exports in this industry have experienced a steady growth rate of 4.7% between 2016 and 2021, reaching $299M.

The country has also taken a pioneering role in shaping public policies and regulations for artificial intelligence. Initiatives like the Ethical Framework for AI in Colombia and establishment of the International Artificial Intelligence Council position the country as a trailblazer in the responsible and ethical use of AI, as recognized by IDC.

In conclusion

Colombia’s diverse offers in the tech industry are transforming the country’s creative sectors, driving innovation and economic growth. The convergence of technology with multiple industries and services has created a thriving ecosystem that fosters collaboration, entrepreneurship, and technological advancement. Colombia’s position as a regional tech hub solidifies as it continues to attract entrepreneurs and investors. By embracing technology and nurturing its creative industries, the country shapes the future of the Latin American startup landscape.

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